CRH has agreed to acquire Kansas-based Ash Grove Cement in a US$3.5bn deal.

Ash Grove operates eight cement plants across eight US states and also has extensive ready-mixed concrete, aggregates and associated logistics assets across the US mid-west. For the year ended 31 December 2016, it reported profit before tax of US$215m and gross assets of US$2.5bn.

The proposed transaction is subject to Ash Grove shareholder and regulatory approvals and will be financed through existing financial resources. The transaction is expected to close around the end of this year.

CRH chief executive Albert Manifold said: “Ash Grove is an excellent addition to CRH’s portfolio of businesses across North America as we seek to deploy our capital into high quality businesses that enhance our global asset base and provide opportunities to create shareholder value.”

Ash Grove chairman Charlie Sunderland added: “CRH, as our largest customer, has enjoyed a close and highly productive relationship with Ash Grove for many decades. The board of directors believes that CRH will be able to bring Ash Grove on the next phase of its development after 135 years in operation and over a century under the stewardship of the Sunderland family.”